At present, the popular offshore companies are mainly registered in the British Virgin Islands (BVI), Cayman Islands, Bermuda, Seychelles, Britain, Singapore and Hong Kong. The advantages of operating offshore companies are mainly reflected in the following aspects:
First, reduce tax expenditure.
One advantage of offshore companies is that they don't have to pay taxes to the government where the company is registered. According to the relevant legal requirements of BVI, offshore companies are exempt from all taxes within 20 years after registration, and only need to pay a certain annual fee to BVI government every year. In recent years, China, the United States, South Korea and many individuals or companies have set up offshore companies to give full play to the advantages of international tax contracts and overseas trusts in asset planning, tax relief, avoidance of financial risks, and scattered loss or nationalization of testamentary trusts.
Second, protect property from litigation damage.
In modern society, property owners are not worried about legal proceedings, because in many cases, being involved in litigation means losing huge amounts of property. Protecting property is as important as acquiring property. In this case, companies and individuals can transfer their property to a safe place through legal channels, that is, they must be legal and safe, and registered offshore companies can perfectly meet these two conditions. The property and interests of offshore companies are completely protected by the laws of the place of registration. In most cases, the laws of the place where an offshore company is registered will not recognize the judgments of other countries. In other words, court judgments obtained in other countries cannot be executed in the place where offshore companies are registered, which effectively protects the property of offshore companies.
Third, protect personal privacy.
In this era of developed network, protecting personal privacy is a headache for the public and many companies. In real life, for various reasons, not all investors are willing to disclose personal information such as their property. In this case, registering an offshore company becomes an effective way to protect investors' privacy, which can effectively protect investors' privacy and avoid unnecessary disclosure of some company and personal information.
4. The registration speed is fast and the operation is convenient.
Compared with most countries and regions, the requirements of offshore companies are more relaxed. For example, to register a BVI offshore company, only one director and one shareholder are needed, and both directors and shareholders can be held by the same person or company. After the company is registered, it can operate in any country in the world without sending staff to the local area. In addition, BVI's company law does not need to hold an annual board meeting or shareholders' meeting, and the company's documents can be stored anywhere in the world, and there is no need to submit an annual financial report to the BVI government. All these effectively reduce unnecessary management links and staffing, and greatly facilitate the operation of the company.
There are many advantages to registering an offshore company, but we must remember to do a good job in the post-maintenance of the company, so that the company's annual settlement, bank account opening and intellectual property protection can ensure the stable development of the company.